Question

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700

Answer 1

1.

A) Total Product Cost	$188,800
B)Total Period Cost	$76,100

1. A) The Total Product Cost is computed as follows;

Direct Material	$88,000
Direct Labor	$44,500
Total Manufacturing Overhead	$56,300
Total Product Cost	$188,800

1.B) The Total Period Cost is computed as follows;  

Total Selling Expense	$41,400
Total Administrative Expenses	$34,700
Total Period Cost	$76,100

2.

A	Total Direct Manufacturing Cost	$132,500
B	Total Indirect Manufacturing Cost	$56,300

Explanation;

2.A) The total direct manufacturing cost is computed as follows;  

Direct Material	$88,000
Direct Labor	$44,500
Total Direct Manufacturing Cost	$132,500

2.B) The total indirect manufacturing cost is computed as follows;  

Variable Manufacturing Overhead	$22,600
Fixed Manufacturing Overhead	$33,700
Total Indirect Manufacturing Cost	$56,300

3

A	Total Manufacturing Cost	$188,800
B	Total Non Manufacturing Cost	$76,100
C	Total Conversion cost	$100,800
	Total Prime Cost	$132,500

Explanation;

3. A) The Total Manufacturing Cost is computed as follows;

Direct Material	$88,000
Direct Labor	$44,500
Total Manufacturing Overhead	$56,300
Total Manufacturing Cost	$188,800

3. B) The total non manufacturing cost is computed as follows;

Total Selling Expense	$41,400
Total Administrative Expenses	$34,700
Total Non Manufacturing Cost	$76,100

3. C) The Total Conversion cost is computed as follows;

Direct Labor	$44,500
Total Manufacturing Overhead	$56,300
Total Conversion Cost	$100,800

The Total Prime Cost is computed as follows;

Direct Material	$88,000
Direct Labor	$44,500
Total Prime Cost	$132,500

4.A)The Total Variable manufacturing cost

Direct Material	$88,000
Direct Labor	$44,500
Variable Manufacturing Overhead	$22,600
Total Variable Manufacturing Cost	$155,100

4.B) Total Fixed cost for the company as a whole

Fixed Manufacturing Overhead	$33,700
Fixed Selling Expense	$25,600
Fixed Administrative Expenses	$28,800
Total Fixed Cost	$88,100

4. C ) Variable Cost Per Unit Produced and Sold

Direct Material	$88,000
Direct Labor	$44,500
Total Variable Manufacturing Overhead	$22,600
Variable Selling Expenses	$15,800
Variable Administative Expense	$5,900
Total Variable Cost	$176,800
Number of Units Produced and Sold	$1,000
Variable Cost Per Unit Produced and Sold	$177